Customer Experience Improvement: When Bad News is Good News

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CEM requires embracing of customers' constructive feedback. CEM is more systematic and broad than typical customer advocacy efforts.

See http://ClearActionCX.com

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Customer Experience Improvement: When Bad News is Good News

  1. 1. © Copyright ClearAction LLC. All rights reserved. www.ClearActionCX.com When Bad News is Good News Customer Experience Improvement
  2. 2. © Copyright ClearAction LLC. All rights reserved. Good news is no news No news is bad news Bad news is good news! -Jim Morgan, Chairman, Applied Materials
  3. 3. © Copyright ClearAction LLC. All rights reserved. 1% Reduction of Negative Word-of-Mouth 1% Increase of Positive Word-of-Mouth 0.41% Revenue Growth 0.14% Revenue Growth 300% ROI on reducing negative buzz compared to increasing positive buzz -London School of Economics Advocacy Drives Growth study 3X ROI on Substance Versus Sizzle Highest Growth from Ease-of-Doing-Business © Copyright ClearAction. LLC All rights reserved.
  4. 4. © Copyright ClearAction LLC. All rights reserved. Key #1: Plan Full Use of Customer Feedback Marketing Sales Customer Engineering Production Human Resources Engineering MarketingFinance Sales Traditional View Customer-Centric View
  5. 5. © Copyright ClearAction LLC. All rights reserved. Customer A Customer B Customer C Product A + + + High Profit Product Product B + Profitable Product Product C - - Losing Product Product D + - Mixed-Bag Product High-Profit Customer Mixed-Bag Customer Losing Customer SOURCE: Thomas N. Petro – “Profitability: The Fifth ‘P’ of Marketing”, Bank Marketing Customers High Margin Medium Margin Low Margin Many Accountable Reactive Basic or Reactive Medium # Proactive Accountable Reactive Few Partnership Proactive Accountable Key #2: Listen to Right Customers in Right Way SOURCE: Kotler & Keller – Marketing Management, 12th Edition
  6. 6. © Copyright ClearAction LLC. All rights reserved.
  7. 7. © Copyright ClearAction LLC. All rights reserved.
  8. 8. © Copyright ClearAction LLC. All rights reserved.
  9. 9. © Copyright ClearAction LLC. All rights reserved.
  10. 10. © Copyright ClearAction LLC. All rights reserved. Customer Segment -ation Market Selection / Focus Value Position -ing Product Develop -ment Service Develop -ment Pricing Sourc -ing Making Distribut -ing Servicing Sales Force Sales Prom -otion Adver -tising Choose the Value Provide the Value Communicate Value Databases Automation Custom Messages Custom Services References Games, Rewards Communities, Web 2.0 etc. Surveys Advisory Boards User Groups Lost Sales Complaints Lifetime Value etc. Total Customer Analysis Customer Value Guidance Usability Ethnography Lifecycle Analysis Purchase Process Post-Purchase Complements etc. Sales Service Billing Switchboard Website, Ads Collateral, Events etc. Data Ownership Root Causes Action Plans Leading Indicators Prediction etc. Customer-Focused Value Chain Touchpoint Alignment Total Experience Innovation Loyalty Behavior Programs Key #3: Integrate Intelligence Sources & Actions Customer Experience Management (CEM)
  11. 11. © Copyright ClearAction LLC. All rights reserved. CEM: Take Advocacy To The Next Step Traditional Advocacy Advantage Go To The Next Level Expedite issues for big customers Rewards, Communities, Experiential marketing, CRM Advisory boards, Reference programs, Surveys Product user groups, Usability testing Customer service
  12. 12. © Copyright ClearAction LLC. All rights reserved. CEM: Take Advocacy To The Next Step Traditional Advocacy Advantage Go To The Next Level Expedite issues for big customers Retain large accounts Rewards, Communities, Experiential marketing, CRM Increase revenue Advisory boards, Reference programs, Surveys Become customer-centric Product user groups, Usability testing Improve product performance Customer service Maintain use of product
  13. 13. © Copyright ClearAction LLC. All rights reserved. CEM: Take Advocacy To The Next Step Traditional Advocacy Advantage Go To The Next Level Expedite issues for big customers Retain large accounts Prevent issues systematically & Align effort with lifetime value Rewards, Communities, Experiential marketing, CRM Increase revenue Ensure seamless touch-points & Prevent hassles Advisory boards, Reference programs, Surveys Become customer-centric Product user groups, Usability testing Improve product performance Customer service Maintain use of product
  14. 14. © Copyright ClearAction LLC. All rights reserved. CEM: Take Advocacy To The Next Step Traditional Advocacy Advantage Go To The Next Level Expedite issues for big customers Retain large accounts Prevent issues systematically & Align effort with lifetime value Rewards, Communities, Experiential marketing, CRM Increase revenue Ensure seamless touch-points & Prevent hassles Advisory boards, Reference programs, Surveys Become customer-centric Embrace negative feedback via value-chain involvement Product user groups, Usability testing Improve product performance Expand inputs to include the customer’s full experience with brand Customer service Maintain use of product Add customer-focus to value chain behind service functions
  15. 15. © Copyright ClearAction LLC. All rights reserved. What Is The Difference? Customer Experience Management Customer Advocacy Customer Engagement Customer Relationship Management Customer Satisfaction Customer Loyalty Experiential Marketing Customer Retention User Experience
  16. 16. © Copyright ClearAction LLC. All rights reserved. Typical Customer Programs – Not Connected!
  17. 17. © Copyright ClearAction LLC. All rights reserved. Subset: Experiential Marketing
  18. 18. © Copyright ClearAction LLC. All rights reserved. Subset: Loyalty Behavior Programs
  19. 19. © Copyright ClearAction LLC. All rights reserved. Subset: CRM
  20. 20. © Copyright ClearAction LLC. All rights reserved. Subset: Customer Profiles CLV, Customer Analysis
  21. 21. © Copyright ClearAction LLC. All rights reserved. Subset: Customer Touchpoints
  22. 22. © Copyright ClearAction LLC. All rights reserved. Subset: Experience Innovation
  23. 23. © Copyright ClearAction LLC. All rights reserved. Customer Experience Management (CEM) CRM Customer Engagement Experiential Marketing Online Communities, Blogs Automation: Sales Force, Customer Service, Marketing Total Customer Analysis Internal Branding Customer Value Games, Rewards Total Experience Innovation Loyalty Behavior Programs Events Customer- Focused Value Chain Customized Messages & ServicesReferences, Advisory Boards, User Groups Surveys Touchpoint Alignment CEM: Do The Whole Job Subset: Internal Branding & Customer-Centricity
  24. 24. © Copyright ClearAction LLC. All rights reserved. CEM: Doing the Whole Job Wamu Starbucks Apple Singapore Airlines Mini Cooper American Express SonyRuth’s Chris Steakhouse
  25. 25. © Copyright ClearAction LLC. All rights reserved. Do you like these concepts? Let us help you master them to increase your company’s growth! Contact us today: OptimizeCX@ClearActionCX.com tel +1 408 687 9700
  26. 26. © Copyright ClearAction LLC. All rights reserved. ClearAction clients praise our insights on actionability & engagement “ClearAction taught us things that wouldn’t readily cross our minds and has increased our efficiency & accuracy in many areas. We highly recommend ClearAction as a business consultant.” “The cross-functional collaboration necessary to successfully manage the customer experience requires big picture, systems thinking. ClearAction brings very practical, well-thought out approaches to get the internal cooperation needed.” “ClearAction is very dependable and detail-oriented, and has an extremely high sense of integrity. There's no question ClearAction will do what's needed to ensure the work is done correctly and the client's best needs are taken into account.”
  27. 27. © Copyright ClearAction LLC. All rights reserved. Consulting Roles We have provided ClearWisdom™ to dozens of companies Partial List
  28. 28. © Copyright ClearAction LLC. All rights reserved. Customer Experience Optimization Talk Show Hear interviews with companies such as: Adobe, Aon, CenturyLink, Cisco, Citrix, Coca Cola Enterprises, Dell, EMC, GE, HP, ICW, Intuit, Kimpton, NCR, Philips, Safelite, Sungard, SunTrust, Symantec, TELUS, tw telecom, Virgin Mobile, Wells Fargo http://ClearActionCX.com/cx-podcasts e-books available at ClearActionCX.com/cx-books or Amazon Kindle: Metrics You Can Manage For Success Customer Experience Improvement Momentum Innovating Superior Customer Experience white paper available at ClearActionCX.com/cx-articles Employee Engagement in Superior Customer Experience: 4 Overlooked Key Competencies for Sustainable Results Resources about customer experience optimization See more at http://ClearActionCX.com/best-practices
  29. 29. © Copyright ClearAction LLC. All rights reserved.
  30. 30. © Copyright ClearAction LLC. All rights reserved. For More About Customer Experience: www.ClearActionCX.com/best-practices OptimizeCX@ClearActionCX.com tel +1 408 687 9700

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